Hyper Corporation Extends 5.4 Billion Won Loan to Affiliate Finger Labs, Financial Distress Raises Concerns
Hyper Corporation decided to extend a 5.4 billion won operating fund loan to its affiliate Finger Labs, in which it holds a 33.36% stake, for one more year. This is a maturity extension of an existing loan with an interest rate of 4.6%.
Finger Labs is in severe financial distress, with negative equity of 22.689 billion won as of end-2025 and a net loss of 2.208 billion won. The total outstanding loan balance reaches 5.9 billion won.
The company's CEO also serves as the CEO of the borrowing company, raising questions about transaction independence. Continued lending under these circumstances threatens shareholder value.
[AI Summary]Hyper Corporation continues to supply funds to a financially distressed affiliate by extending the loan, which degrades capital allocation efficiency and increases credit risk for shareholders.